Lowe's (LOW) was looking weak at the end of June, and we said "with all three of these charts looking weak, I would anticipate further price declines for LOW in the weeks ahead. A close below the 200-day moving average line could be the trigger -- $70 is our first downside price objective and the November lows around $66 could be an intermediate-term target."
Prices sold off hard into late July and bounced. With prices weak today and below the popular moving averages, a fresh look is warranted.
In this updated daily bar chart of LOW, below, we can see how prices bounced into early August but have been unable to stay above the 50-day and the 200-day moving averages. Prices are likely to weaken further and take the 50-day average below the 200-day line for a bearish dead cross. The On-Balance-Volume (OBV) line declined from late May to mid-July and improved slightly. Overall the OBV line suggests that the sellers of LOW are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator improved back to the zero line this month but now looks like it will turn back down for a fresh outright sell signal.
In this weekly bar chart of LOW, below, we can see that prices are below the rising 40-week moving average line. Prices have found good support in the $70-$65 area several times over the past three years. The weekly OBV line paints a very bearish picture as it has been in a downtrend since early 2015 and prices have gone up even with this bearish-looking indicator. The MACD oscillator on this time frame is below the zero line now for an outright sell signal.
In this Point and Figure chart of LOW, below, shows a bearish price target of $71.
Bottom line -- LOW looks like it is heading still lower. $71 is our Point and Figure price target but there is no special support there and a deeper decline to $68 cannot be ruled out at this time.